Vulcan Energy (ASX:VUL) had reached an agreement with global traceability specialist Circulor for theestablishment of world-first full lithium traceability and CO2measurement.
The companies will work together on a full traceability and dynamic CO2measurement solution for Zero Carbon Lithium across the European Lithium-ion battery and Electric Vehicle (EV) supply chain.
Circulor’s customers include major European automotive manufacturers such as Volvo Cars, Daimler, Polestar and Jaguar Land Rover, which indicates OEMs’ growing need to demonstrate responsible sourcing of raw materials like lithium and to track and manage the embedded CO2emission in their upstream supply chain for EVs, as they strive towards their net zero targets.
The company offers a software solution that enables customers to track raw materials through supply chains to demonstrate responsible sourcing and sustainability.
This system implementation enables reputational protection, proof of compliance with regulations and dynamic carbon tracking.
Circulor’s CO2solution provides a dynamic month-to-month visibility of CO2intensity across the supply chain and its participants.
Battery raw materials transparency, traceability and sustainability were directly targeted in the latest European Commission Battery Regulation proposed in December 2020.
Vulcan will be implementing Ciculor’s solution to its future lithium supply contracts with European OEMs to help them meet their sustainability objectives for material traceability and CO2transparency.
Circulor’s solution will first be used during Vulcan’s project development including at a pilot and demonstration plant level, when the first samples are dispatched to customers.
The two companies will work together to prepare Vulcan and its supply chain for full traceability of Vulcan’s Zero Carbon Lithium product at the production start in 2024
The EV battery market in Europe is evolving fast with many new players establishing themselves in the market, and with a clear advantage for those who can prove sustainable practices,” Circulor’s CEO, Douglas Johnson-Poensgen, said.
“We are pleased to be supporting Vulcan in meeting Europe’s needs for the electric vehicle transition, from a zero-carbon source, for many years to come. Together, we will set a new benchmark for the responsible sourcing of raw materials to enable sustainable mobility for the future.”
Vulcan’s CEO, Dr Francis Wedin, said the collaboration between Circulor and Vulcan will allow his company to develop the world’s first fully traceable, transparent and zero carbon lithium product extracted and consumed in Europe.
“As well as showing Vulcan’s commitment to a transparent supply chain with net zero carbon footprint, it is another industry-leading move by Vulcan that sets the way forward for the raw materials industry to improve and align to OEMs’ goal of producing truly sustainable EVs.”